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Really interesting dynamic here with

going full degen yield farming. Just eyeballing the account it seems like at one point between 20-30% of the entire AUM of Sushi was coming from an account associated with

@FTX_Official

. Which kind of begs the question…

290

kain.eth

@kaiynne

Aug 29, 2020

Where does this risk ultimately sit on this trade? Several people in the

@synthetix_io

community have reviewed the code but we didn’t audit it and the complexity of the contracts was such that we felt there was reasonable SC risk here.

kain.eth

@kaiynne

Aug 29, 2020

We have seen several examples of LP rewards contracts that had the potential to be bricked accidentally or intentionally by a deployer. When you send your LP tokens to these contracts you lose control of your funds, the Uni LP wrapper does nothing to protect you!

kain.eth

@kaiynne

Aug 29, 2020

I personally put less than 1% of my deployable assets in these contracts for this reason. I doubt I could have convinced the sDAO signers to dump 50m in here but I didn’t even try because of, you know sanity, and I say this as a total lunatic.

Replying to

What % of your $ is in SNX? What are the odds SNX goes down at least enough so you lose 1% of your $? (Hint it's like 40% or something in the next day, crypto volatile yo.) I claim you're being inconsistent here.

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SBF

@SBF_FTX

Aug 29, 2020

1) Risk is weird! It's hard to think about well. But it's really important to.

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Replying to

and

I’m not sure that this analogy holds since I’m both escrowed as a core contributor and escrowed via staking rewards for at least another year. So even if I wanted to diversify to a “reasonable” level I couldn’t. Plus I’m also realistically liquidity trapped.

Replying to

Oh yeah totes agree, you don't have a choice there. But when you wake up each day, how bad does it feel that you are forced to have that position? (Or does it even feel bad? Maybe it feels like you trust your instincts?) vs how you'd feel if you had 1/4 as much in sushi

Replying to

and

Basically my point is: I think in addition to one being a choice and the other forced, you _also_ feel like one is more "bad" than the other, even if they're comparable risks. I'd guess you fucking believe in SNX so it doesn't feel like a "gamble" it feels like a strategic play

Replying to

and

I mean I don’t think either of them are bad, I’m in the Sushi trade as well and I’m doing a farm and hold strategy, it’s a good trade imo. But I wouldn’t put 10% of my aum into it, I mean maybe in a few days it gets better but first mover yield farming induces massive tail risk.